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British Sky Broadcasting Group (LSE:BSY) announced Tuesday, 3rd April, Chairman James Murdoch stepped down from his post he held since 2007, barely a month after the Office of the Communication (Ofcom) disclosed its investigation on whether he and BSkyB are still “fit and proper” holder of television licence.
Mr. Murdoch, who will remain as a Non-Executive Director of BSkyB, said “I have been privileged to serve first as Chief Executive and then as Chairman of this outstanding company and I am proud of what we have achieved over this period.”
“I am aware that my role as Chairman could become a lightning rod for BSkyB and I believe that my resignation will help to ensure that there is no false conflation with events at a separate organisation.”
Mr. Murdoch had earlier given up his position as Executive Chairman of News International, the UK publishing arm of News Corporation, BSkyB’s parent company, amidst pressure and criticism of phone hacking in one of the company’s newspapers.
“As attention continues to be paid to past events at News International, I am determined that the interests of BSkyB should not be undermined by matters outside the scope of this Company,” Mr. Murdoch emphasised.
Reorganisation
Mr. Murdoch will be replaced by Nicholas Ferguson, BSkyB’s Deputy Chairman and Senior Independent Non-Executive Director. Mr. Ferguson joined the board of BSkyB in 2004.
In place of Mr. Ferguson, Tom Mockeridge, who joined the board of BSkyB in 2009, will become the Deputy Chairman. Andrew Higginson, a member of the board since 2004, becomes the new Senior Independent Non-Executive Director.
New Chairman’s Comment
Mr. Ferguson acknowledged Mr. Murdoch’s “outstanding contribution” after serving as Chairman and Chief Executive of the company.
“With his vision, drive and strategic insight, the Company has performed exceptionally and continues to transform itself to take advantage of a broader growth opportunity in home entertainment and communications.”
Mr. Ferguson pointed out that the board’s belief in Mr. Murdoch’s integrity remain strong and that the Board will remain “focused on maintaining BSkyB’s strong progress, delivering an outstanding service for customers and creating value for all shareholders.”
“We understand his decision to step aside at this time and we both welcome and look forward to his continued contribution as a non-executive director.”
References
↑ Company History
↑ Ofcom Probe threatens BSkyB licence
